Model For Evaluation On Development Of Financial Centers

Shanghai's aim at becoming an international financial center needs a comprehensive evaluation system. Evaluating the development of financial centers objectively is beneficial for Shanghai to place itself on a reasonable and rational financial position. It also helps Shanghai to overcome its weakness and make strategies for developing financial centers. The foreign systems of evaluating development of financial centers mostly focus on quantitative indicators. These quantitative indicators are based on the level of international financial centers. When these are applied in Chinese cities, they need a lot of adjustments. Meanwhile, there are too many quantitative indicators in the foreign system of evaluating development of financial centers, which fails to focus on prominent and fails to find correlation among the quantitative indicators.This thesis divides the systems of evaluating development of financial centers into five parts. It includes financial environment, financial scale, financial conglomeration, financial services and financial talents. There are 14 financial quantitative indicators to illustrate these five parts.This thesis both uses method of qualitative analysis and method of quantitative analysis to analyze the research. Meanwhile, it also uses a method of a combination of horizontal and vertical analysis to illustrate the topic. In qualitative analysis, based on the theories of financial centers, this thesis finds indicators to construct the systems of evaluating development of financial centers. It prepares for the quantitative analysis. In quantitative analysis, this thesis uses principal component analysis to reduce the number of indicators. It helps to find main factors which determine the systems of evaluating development of financial centers. It can be used to test the correctness of the previous qualitative analysis as well.In horizontal analysis, this thesis collects the financial statistics in 2007 to make a comprehensive ranking on development of financial centers among eight cities. In vertical analysis, through analyzing shanghai's five-year financial statistics, this thesis points out several advantages and constrains on developing the financial centers for Shanghai.Based on the above research results, this thesis finally offers some suggestions on the development of financial centers for Shanghai, such as enhancing the development of GDP and financial scale, nurturing the financial talents and improving the financial environment.